Blue Jet Healthcare Limited Q1 FY '25 Earnings Call Summary
Company Performance
• Date of Call: August 7, 2024
• Key Management: Shiven Arora (Managing Director)
• Financial Metrics:
• 22% Return on Capital Employed (ROCE)
• Debt-free status with over INR 380 crores in cash
• 11% sales decline compared to previous quarter due to logistics costs
Capacity Expansions and R&D
• Cardiovascular Drugs and MRI Products:
• Capacity expansions underway
• New CDMO business capacity added (120 KL at Unit II)
• Additional 70-80 KL planned by September/October
• New Facilities:
• Small volume plant for regulatory filings expected by Q1 FY '26
• Infrastructure projects at Unit III nearing completion
Financial Insights
• Revenue Trends:
• 11% revenue drop in Q1 FY25 due to logistical delays
• 60% growth in pharmaceutical intermediate segment
• Cost Management:
• Improved gross margins
• Shift to straight-line depreciation method
• Increased inventory days due to goods in transit
Future Outlook
• Sales Forecast:
• Stable order book with expectations for consistent dispatches
• Anticipated increase in sales next year
• Product Development:
• New product validations in contrast media segment
• APD plant on track for Q1 FY26 completion
Strategic Discussions
• Capacity for Growth:
• Adequate capacity for new contrast media products
• Greenfield site development planned
• Profitability Concerns:
• Operating leverage expected to sustain EBITDA and PAT margins
• Market Opportunities:
• Secured contracts in the saccharin market
• Promising outlook for pharma intermediary business
Risk Management
• Purchase Orders:
• High confidence in receiving POs; updates promised if necessary
• Capacity Utilization:
• Current utilization at 70-75%
• 14% increase in manpower expenses due to expansions
Resource Allocation
• Project Focus:
• Two-thirds resources on existing projects, one-third on new
• Greenfield project necessary due to saturated capacities
Conclusion
• Management's Assurance:
• Clear visibility on product requirements for upcoming fiscal years
• Proactive capacity planning in alignment with customer demand
• Call Closure: Management thanked participants and addressed final questions.

Blue Jet Healthcare Limited Q4 FY '24 Earnings Conference Call Summary
Business Performance
• Successful Restructuring: Achieved 10% growth in Q4 compared to Q3.
• Key Financial Metrics:
• Return on Capital Employed (ROCE): 26%
• EBITDA Margin: 32%
Strategic Focus
• Talent Acquisition: Emphasis on acquiring R&D talent in Europe.
• Capital Expenditure Plans: Considering larger capex in response to outsourcing trends in the CDMO sector.
Revenue Segments
• Contrast Media:
• Constitutes 68% of total revenues.
• Increased collaboration with industry leaders.
• Pharma Intermediates:
• Grew 156% year-on-year due to new production and strong order book.
• Artificial Sweeteners:
• Ongoing development and solid customer relationships.
Capex and R&D Updates
• CFO Insights:
• Progress on new units and delays in validation timelines.
• Renewable Energy Initiatives: Launch of a solar plant to meet 60-70% of power needs.
• Scientific Advancements: Increased talent and multiple patents filed in FY24.
Financial Overview
• Sales Growth: 10% in Q4, despite a 3.9% drop in EBITDA.
• FY24 Performance:
• Overall turnover decreased by 1.3%.
• EBITDA improved by 1.8% due to lower raw material costs.
• Future Capex Plans: INR 200 crores annually for the next two years.
Future Growth Prospects
• Product Performance:
• Successful iodine validation and European approval for gadolinium.
• Promising order book for cardiovascular drugs.
• Capacity Expansion: New facilities designed for increased demand across multiple products.
Employee and Pipeline Expectations
• Employee Costs: Anticipated significant increase due to R&D and management expansion.
• Robust Pipeline: Doubling of RFPs in contrast media and artificial sweeteners.
Revenue Recognition and Capital Expenditure
• Revenue Practices: Sales recorded upon delivery, affecting quarterly figures.
• Increased Capex Plan: INR 400 crores over two years with a target fixed asset turnover ratio of over three.
Conclusion
• Positive Outlook: Management confident in growth trajectory and margin expansion driven by operational efficiencies and new product contributions.

Earnings Call Overview
• Date: February 9, 2024
• Transcript submitted to BSE and NSE
• Key management present: Managing Director Shiven Arora and CFO Ganesh Karuppannan
Key Developments
• Incident at Unit 3, Mahad
• Ongoing suspension of production
• Commitment to affected families and safety improvements
• Business Opportunities
• Focus on cardiovascular drugs and MRI contrast media
• Expected validation in FY '25
Financial Performance
• Sales Growth
• 5% increase year-to-date in sales
• Challenges in artificial sweetener category due to low-priced imports
• Turnover Decline
• 1% decline in total turnover
• Significant drops in contrast media (8%) and artificial sweetener (35%)
• Pharmaceutical intermediates segment growth of 250%
• Profitability
• 19% profit after tax (PAT) for Q3
• 23% PAT for the nine-month period
• Gross margins improved to 57.5%
Future Outlook
• New Product Launches
• Cardiovascular intermediate product launched, significant revenue expected in Q1 FY '25
• MRI-related products expected to increase supplies from Q2 FY '25
• R&D Expansion
• Doubled capacity and personnel
• Development of new chemistry platforms
Strategic Focus
• Market Position
• Strong position in iodinated contrast media
• Plans for aggressive production ramp-up
• Capital Expenditures
• Estimated INR 160 crores for FY '24 and INR 200-220 crores for FY '25
• Investments in utilities, infrastructure, and backward integration
Challenges and Adaptations
• Production Delays
• Customer validation issues and focus on safety systems
• Market Pressures
• Competitive pressures from Chinese exporters in the sweetener market
• Strategic shift towards long-term CDMO customers
Conclusion
• The company remains focused on adapting to market dynamics, expanding its product portfolio, and maintaining profitability amidst challenges. Future growth is anticipated, particularly in the pharmaceutical intermediates segment.

Blue Jet Healthcare Limited Earnings Call Summary
Overview
• Date of Call: November 15, 2023
• Key Participants: Managing Director Shiven Arora, V K Singh, Ganesh Karuppanan
• Focus: Financial results for the quarter and half-year ended September 30, 2023
• Significance: First earnings presentation post-listing on Indian stock exchanges
Business Segments
• Specialty Pharma and Healthcare Ingredients:
• Three main verticals:
• Contrast media intermediates
• Artificial sweeteners
• Pharma intermediates/APIs
• Growth Metrics:
• 20% CAGR over the past three years
• Export-led growth with strong client relationships
Segment Highlights
• Contrast Media:
• Projected growth of 6%-8% from 2023 to 2025
• Development of advanced intermediates for medical imaging
• High-Intensity Sweeteners (HIS):
• Contributes ~20% to revenue with a CAGR of 25-30%
• Holds ~10% of global saccharine capacity
• Pharma Intermediates:
• Focus on chronic therapeutic segments and contract development
• Recent commercialization in cardiac space boosting revenues
Financial Performance
• H1FY24: 7.8% revenue growth, improved EBITDA margins
• Q2FY24: Revenue decline due to reduced artificial sweetener sales
Incident Response
• Fire at Unit 3:
• Resulted in casualties but minimal operational impact
• Company cooperating with authorities and has insurance coverage
Analyst Inquiries
• Saccharin Business:
• Challenges from cheaper imports but aiming to maintain gross margins
• Contrast Media Growth:
• Growth driven by new product launches and long-term contracts
• Market Size for New Formulations:
• Estimated sizable opportunity in pharmaceutical intermediates
Future Outlook
• Capital Expenditure Plans:
• INR 200 crores in FY24 and INR 150 crores in FY25
• Focus on backward integration to reduce reliance on imports
• Management Optimism:
• Positive growth across all business verticals and commitment to operational stability